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MANILA, Philppines – The state deposit insurer has filed a criminal complaint against the former chairman and 5 other officers of the troubled Export and Industry Bank (Exportbank) for conducting “unsafe and unsound” banking.
In a statement on Friday, May 10, the Philippine Deposit Insurance Corporation (PDIC) said it has filed before the Department of Justice on May 9 after it found that the bank officers violated the PDIC charter and the General Banking law.
Charged were:
- Jaime C. Gonzales, former Chairman of EIB
- Juan Victor S. Tanjuatco and Nilo L. Pacheco, Jr., former bank presidents
- Teresita Q. de Ocampo, former Vice President and Chief Financial Officer
- Alex Luis M. Pesigan, former Senior Vice President and Head of Treasury Group
- Adeline L. Grimares, former Vice President, Risk Management Group
PDIC alleged that the respondents authorized and allowed the payment of a “success fee” of about US$4.8 million, when the obligation to pay such a fee has not arisen”.
PDIC said that of this fee, $3 million was received by AO Capital Partners Limited, where Gonzales was also the Chairman.
Finance Secretary Cesar Purisima supported PDIC’s case, sang that the agencies attached to the Department of Finance (DOF), such as the PDIC, “will not abide by practices that selfishly endanger the savings of Filipinos for the personal gain of a few.”
On April 16, the PDIC announced it will liquidate Exportbank, which it had shuttered, after no white knight came up to help it get back on its feet.
The Bangko Sentral ng Pilipinas ordered the bank closed, citing its “inability to meet obligations” and “insufficient reliable assets to meet its liabilities.”
BDO previously offered to take over the ailing bank. However, the negotiations fell through due to legal problems. – Rappler.com
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